The Use of Ethical Codes of Practice in Procurement and Supply

Understanding Ethical Codes of Practice in Procurement and Supply

Purpose of Ethical Codes

Guidance: Ethical codes provide guidance to procurement professionals on how to approach ethical dilemmas.
Standardisation: They set a standard for ethical behaviour across the profession.
Accountability: Codes of conduct hold procurement and supply professionals accountable for their actions.

What Ethical Codes Include

Responsible Sourcing: Emphasis on sourcing goods and services in a sustainable and ethical manner.
Respect for Laws and Regulations: Ensures compliance with local, national, and international law.
Conflict of Interest: Clear guidelines to handle potential conflicts of interest.
Fairness and Objectivity: Mandates non-discriminatory and neutral actions and decisions.
Professional Competence: A commitment to maintain and enhance professional knowledge and skills.

Importance of Implementing Ethical Codes

Building Trust: Ethical practices in procurement and supply build trust with suppliers, employees, and other stakeholders.
Mitigating Risks: Application of ethical codes can mitigate legal and reputational risks.
Driving Sustainability: Encourages sustainable procurement and consumption, promoting responsible business.
Enhancing Reputation: Upholding such standards contributes to a high reputation for the company in the marketplace.

Handling Breaches of Ethical Codes

Reporting Mechanisms: Structures to report unethical conduct without fear of retaliation.
Investigation Procedures: Following clear procedures to investigate reported breaches.
Consequences and Repercussions: Defined consequences for those found to be in violation of the code, including dismissal or legal action.
Transparency: Open communication about measures taken to address breaches.

In conclusion, ethical codes in procurement and supply help drive responsible business practices and decision-making. These codes set out values and principles that all professionals should adhere to in their working lives.